SINGAPORE - Ascott Residence Trust (Ascott Reit) reported a 14 per cent drop in distribution per unit (DPU) to 1.51 Singapore cents for the first quarter of 2017, from 1.75 cents for the year-ago period.

Ascott Reit said DPU for the three months to March 31, 2017, would be 1.64 cents if it was adjusted to exclude Ascott Reit's share placement in March last year to fund the acquisition of Sheraton Tribeca New York Hotel as well as contribution from the hotel. DPU for the corresponding quarter last year would be 1.57 cents if it was adjusted to exclude a one-off net realised exchange gain and the equity placement. This translates to a 4 per cent increase in DPU to 1.64 cents in the first quarter of 2017 from 1.57 cents a year ago.

Revenue for the Q1 2017 grew 5 per cent to S$111.3 million, mainly due to the acquisition of Sheraton Tribeca New York Hotel in 2016. Revenue per available unit notched up 2 per cent to S$128, due to higher average daily rate from Sheraton Tribeca.

Mr Bob Tan, chairman of Ascott Reit's manager, said Sheraton Tribeca continues to achieve above 90 per cent occupancy and that with the Reit's asset size will grow to S$5.3 billion with recent acquisitions of properties in Germany and Singapore, "reinforcing its position as the largest hospitality Reit."

He added: "As part of our ongoing active management of Ascott Reit's portfolio, we recently divested 18 rental housing properties with limited growth potential for 12 billion yen (S$153.6 million. The net divestment proceeds may be used to enhance Ascott Reit's assets or fund potential acquisitions."